GLOBAL WINE PRODUCTION FALLS TO A 60 YEAR LOW DUE TO A HARSH WEATHER

Wine output across the globe plunged to the lowest level in more than half a century after poor weather across Europe significantly impacted production, reports international wine organization OIV.

The Director General of the OIV, Jean-Marie Aurand, presented information on the potential wine production, assessment of the harvest, and state of the market and international trade in 2017 at the Organisation's headquarters in Paris on 24 April.

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With 7.6 mha in 2017, the size of the global area under vines appears to have stabilised.

Wine production was at 250 mhl in 2017. This was a historically low production year, with a decline of 8.6% compared with the previous year, explained in particular by unfavourable climate conditions within the EU (-14.6% compared with 2016).

A total of 243 mhl of wines were consumed in 2017. Consumption had almost stabilised following the 2008 economic crisis, with a positive trend over the past 3 years.

World wine trade: there was a very positive balance, both in terms of volume (108 mhl, +3.4% compared with 2016) and value (30bn EUR, +4.8% compared with 2016).

The main reason behind the plunge is a considerable production decrease in the EU, the world’s biggest wine producer. All top wine producers in the bloc were reportedly hit by harsh weather last year, which triggered an overall decline of nearly 15 percent to 141 million hectoliters.

According to the agency’s estimations, Italian wine output fell by 17 percent to 42.5 million hectoliters. French production was down 19 percent at 36.7 million hectoliters, while Spanish output declined by 20 percent to 32.1 million hectoliters.

OIV’s projections exclude juice and grape must. In France, most of the key regions including Bordeaux and Champagne were hit by spring frosts, drought, and storms, dragging production to a record low.